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How else would you do it? Don't you need to own some asset from which you can extract rent?
by marssaxman 8y ago
How else would you do it? Don't you need to own some asset from which you can extract rent?
- ghosterrific 8y agoBeing rich is not same as having passive income. Own 1 Share of AAPL and you will get about 12c/month in passive income.
- scott-smith_us 8y agoRoyalties from a book or patent or software?
- deleted 8y ago[deleted]
- cimmanom 8y agoYou do, but not all such assets are expensive (in money - most cost a significant investment of time up front to create). Intellectual property (apps, writing, music) is a popular one. A more concrete example with relatively low capital investment (say, within the reach of someone with a 5-figure income) might be a rural highway billboard, or a snow-blower that you rent to your neighbors after storms. I remember reading a story about someone who built a miniature vending machine empire. Often, extracting rent from such an asset takes some small amount of ongoing work (ex: marketing; app maintenance; pasting new ads onto the billboard; refilling the vending machine every couple weeks), but such work is either relatively infrequent or scales your income much better than being paid directly for your time does.